The co-ops have never been a satisfying alternative to the public option. But the version in Baucus's bill isn't even a satisfying alternative to the co-op option. It's a neutered version of the co-op idea, which was in turn a neutered version of the public option.
Basically, each state gets a co-op, but larger businesses can't enroll which seriously limits the size of the co-ops and consequently their ability to negotiate decent rates. And unlike the public option, the co-ops wouldn't have the negotiating prowess of the federal government. So Baucus and his WellPoint stooge have created a co-op plan that's completely impotent.